In a previous blog post I commented that bearing in mind past events, I doubted that many investors would continue to believe that the long-standing CEO Rob Cotton should continue to lead the company. It would appear the directors agree with me because this morning (1/3/2017) it was announced he was stepping down with immediate effect. Brian Tenner, CFO, will take over as interim CEO and will lead the previously announced strategic review.
The share price rose slightly in early trading on the day. Does this mean that NCC is now out of the woods and shareholders can relax? Or those who sold after the several recent profit warnings should buy it back? As an existing (if now albeit small) shareholder in the company I would not want to give any advice on that of course (ShareSoc and its directors never give buy or sell recommendations as we keep on advising folks but some people seem to forget). All I can say is that in these kinds of circumstances, there is often more bad news revealed over time as new management tackles the past problems and it can often take many months to get clarity on the future prospects for the business. But one thing to always look at when a company is in some difficulties is the strength of the balance sheet.